The nature and future of Regulatory Stewardship - - PowerPoint PPT Presentation

The nature and future of Regulatory Stewardship

www.RegulatoryFrontlines.wordpress.com Professor Jeroen van der Heijden | Chair in Regulatory Practice | School of Government | Victoria University of Wellington

www.RegulatoryFrontlines.wordpress.com

Kia ora

• How it took 4,000+ years to get

to Regulatory Stewardship

• Stewardship elsewhere
• What Regulatory Stewardship

could be – light, regular and plus

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Evolution of regulation

• Codex Hammurabi
• Ca 1750 BC
• System of

prescriptive rules and penalties for non-compliance

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Evolution of regulation

• Codex Hammurabi
• If a builder builds

a home

• And the home

falls down and kills its owner

• Then the builder

shall be killed

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Evolution of regulation

• Greek and Roman

influence (ca. 600 BC – 600 AD)

• Further

codification of rules and penalties

• Focus on

commerce, property and bodily harm

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Evolution of regulation

• Greek and Roman

influence (ca. 600 BC – 600 AD)

• Rules given by

deities and/or inspired by nature

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Evolution of regulation

• Middle ages

(ca. 600 – 1600 AD)

• The body as

target of punishment

• Deterrence

becomes a spectacle

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Evolution of regulation

• Middle ages

(ca. 600 – 1600 AD)

• Ultimate

surveillance and judgement

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Evolution of regulation

• Renaissance,

Enlightenment, and Early Modernity (16th – 19thC)

• Birth of leniency
• Punishment

becomes an administrative ritual to correct

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Evolution of regulation

• Renaissance,

Enlightenment, and Early Modernity (16th – 19thC)

• Globalization of a

specific type of regulation

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• For more than 3,700

years ‘regulation’ meant:

• Hierarchy
• Intrusive
• Deterrence based
• Prescriptive
• Static
• One size fits all

In sum

• Yet, from beginning of 20th Century onward,

regulatory friction becomes problematic

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Paradigm shifts

• 1950s onward
• Growing

awareness of risks from industrialization

• Growing

awareness of human behaviour

• Growing

awareness of cost

• f regulation

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Paradigm shift #1 Compliance based regulation

• Insights that people do not

just comply because they ‘fear’ consequences of non- compliance

• Move towards compliance-

based regulation and positive incentives

• Mixing of strategies (e.g.

Responsive Regulation)

• Ca. 1970s onward

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Paradigm shift #2 Risk regulation

• Growing externalities (risks)

because of industrialization and globalization

• Call on governments to be

cost-effective (New Public Management)

• Risk-based regulation as an

approach to regulatory governance

• Ca. 1980s onward

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Paradigm shift #3 Outcome

• riented

regulation

• Performance and goal-based

regulation

• Call on government to

stimulate innovation

• Challenge between freedom

and certainty

• Ca. 1990s onward

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Paradigm shift #4 Inclusive regulation

• Collaborative and deliberative

rule-making and implementation

• Delegation, privatization, and

contracting out of regulatory tasks to 3rd parties (regulatory intermediaries)

• Finding a balance between

collaboration and capture

• Ca. 1990s onward

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Paradigm shift #5 Behavioural regulation

• Growing critique to neo-

classical model of rationality

• Heuristics and biases shape

behaviour

• ‘Nudge’ choice rather than

limit choice

• Ca. 2000s onward

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In sum

• Response to ongoing calls for less regulatory friction

and more regulatory facilitation

• Over the last 50 years

‘regulation’ has become to mean:

• Panarchy
• Collaborative
• Mixed incentives
• Goal based
• Flexible
• Tailored

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In sum

• Regulatory failure?
• Too much regulatory

complexity?

• Too much facilitation?

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In sum

• Response to ongoing calls for less regulatory friction

and more regulatory facilitation

• Over the last 50 years

‘regulation’ has become to mean:

• Panarchy
• Collaborative
• Mixed incentives
• Goal based
• Flexible
• Tailored

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In sum

• Response to ongoing calls for less regulatory friction

and more regulatory facilitation 4,000 years

• Over the last 50 years

‘regulation’ has become to mean:

• Panarchy
• Collaborative
• Mixed incentives
• Goal based
• Flexible
• Tailored

www.RegulatoryFrontlines.wordpress.com

In sum

• Response to ongoing calls for less regulatory friction

and more regulatory facilitation

• Over the last 50 years

‘regulation’ has become to mean:

• Panarchy
• Collaborative
• Mixed incentives
• Goal based
• Flexible
• Tailored

4,000 years 50 years

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Reform

• ption #1

Lean regulation

• Administrative Procedure Act

and Regulatory Accountability Act (USA):

• Efficiency, transparency,

accountability

• Benefit-cost analyses
• Ethics on data collection
• One in, one out (IOOO rule)

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Reform

• ption #2

Better regulation

• Systems thinking
• Horizontal coordination
• Collaboration and

deliberation in rule-making and implementation

• Regulatory review and update

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Reform

• ption #3

Regulatory stewardship

• Monitoring, review and

reporting of existing regulatory systems

• Robust analysis and

implementation for changes to regulatory systems

• Good regulatory practice

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In sum

• Different responses

to similar challenges

• All responses are, to

some extent, experiments in progress

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Stewardship elsewhere Custom and spirituality

• Spiritual and religious

epistemologies and ethics

• e.g., Abrahamic religions
• First Peoples’ epistemologies

and ethics

• e.g., kaitiakitanga
• Political and moral philosophy

since the Enlightenment

• e.g., social contract
• e.g., Kant’s categorical

imperative

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Stewardship elsewhere Various disciplines

• Constitutional stewardship
• Environmental stewardship
• Health stewardship
• Ethical stewardship
• Stewardship theory

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Stewardship elsewhere Regulatory governance

• Regulatory stewardship
• Regulatory trust
• Bratspies (2009)
• Responsible regulation,

meta-stewardship

• Brownsword (2011)
• Regulatory orchestration
• Pegram (2017)

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In sum

• Stewardship as a mode of (regulatory) governance

can be thought of as a sliding scale…

• Stewardship is a fluid,
• utward looking idea
• Stewardship
• structure

(systems) and

• agency

(individuals and communities)

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In sum

• Stewardship as a mode of (regulatory) governance

can be thought of as a sliding scale… Patriarchy Parenting Coaching Service Guardian Sovereign

Husbandry

Caretaker Herding

Trusteeship

More authority and control Less authority and control

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Future of Regulatory stewardship

• NZ focus on regulatory

stewardship

• Sits between USA and EU/UK

regulatory reforms

• Mainly structure focus
• More inward than outward

looking

• Necessary but not sufficient
• Stewardship ‘light’

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Future of Regulatory stewardship

• More comprehensive focus on

regulatory stewardship

• Minimum competence

requirements for all levels

• Recognized community of

regulatory professionals

• Genuine participation with

stakeholders (external and internal)

• Stewardship ‘regular’

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Future of Regulatory stewardship

• The hard questions
• Social license to regulate?
• Ethical stewardship

relationship between gov’t and regulatory staff?

• Nurture a culture of voicing

the internal good and bad?

• Public accountability of

higher levels?

• Stewardship ‘plus’

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Future of Regulatory stewardship

• The hard questions

“Stewardship questions the assumptions that accountability and control [through authority] go hand in hand. [It] asks us to forsake caretaking [because] we do not serve [others] when we take responsibility for their well- being.”

Peter Block, 2013

• Stewardship ‘plus’

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Thank you. Questions?

Professor Jeroen van der Heijden

Chair in Regulatory Practice School of Government Victoria University of Wellington Honorary Professor School of Regulation and Global Governance Australian National University

jeroen.vanderheijden@vuw.ac.nz www.RegulatoryFrontlines.wordpress.com